Brizendine v. Conrad
Missouri Court of Appeals
71 S.W.3d 587 (Mo. Ct. App. 2002)
David Brizendine (plaintiff) leased an apartment building to Nora Conrad (defendant), intending she would purchase it at the end of a 12-month term; the lease required a $15,000 payment creditable toward purchase, obligated Conrad to maintain the property and return it in the same condition (minus normal wear and tear) if she didn't buy, and stated the $15,000 would be retained as liquidated damages if she failed to meet her lease obligations. When Conrad declined to purchase, Brizendine found roughly $30,000 in damage beyond normal wear and tear; rather than repair it, he sold to a new buyer and sued Conrad for statutory waste, and Conrad argued the liquidated-damages clause was a special license permitting her to cause such damage. The trial court awarded waste damages, trebled under the statute to roughly $33,000, and Conrad appealed.
Whether a lease's liquidated-damages clause, which allows the landlord to retain a deposit if the tenant fails to fulfill lease obligations, constitutes a special written license permitting the tenant to commit waste.